ca.rudramurthy.b.v aca, cfte, mcom, mfm, m-phil, pgdba, pgdmm 1 “stock selection process”...

CA.RUDRAMURTHY.B.VACA, CFTe, MCOM, MFM, M-PHIL, PGDBA, PGDMM

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““STOCK SELECTION PROCESS”STOCK SELECTION PROCESS”““STOCK SELECTION PROCESS”STOCK SELECTION PROCESS”

VACHANA SECURITIES PRIVATE LTD# 48, 11TH Cross, 4th Main, Malleshwaram, BANGALORE -3.VACHANA SECURITIES PRIVATE LTD# 48, 11TH Cross, 4th Main, Malleshwaram, BANGALORE -3.

Research Head: Vachana Securities Pvt Ltd.

Partner: Vachana Research & Co.

Investment Analyst: TV 9 Kannada.Resource Person: Bombay Stock Exchange.Columnist: Vijaya Vani News Paper.Author: Income Tax, Himalaya Publishing House.

Stock market as an Investment Alternative:

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• It is equivalent to owning any other real asset or financial asset.

• Highest return provider compared to any other asset class.

• Regular income in the form of dividends and also capital appreciation to its holders.

• Any Dividend received is completely exempt from tax and all LTCG are tax exempt and STCG is taxed flat only at 15%.

Why many get attracted to Stock markets???

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• Value of Global Derivative markets is estimated to be $1,200 Trillion, which is 20 times larger than the Global economy. (1Trillion = 1 lakh Cr)

• Probability of Winning and Losing for a beginner is 50% in stock markets, unlike any other profession which is 0%.

• However in the long run the probability of success matches with any other profession.

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Is Investment in Stock markets Risky???

Is Investment in Stock markets = Gambling???

The outcome of Investment is based on Economic activity, Industry performance, Company performance and Market Psychology. Whereas the Outcome of Gambling is random and based on luck.

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Is Investment in Stock markets = Gambling???

Thus for an Investor Buying/Selling stocks randomly, Stock markets looks like a

“Gambling Den”.

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1. How to select stocks?2. Tax Planning in Investments?3. Systematic Investments and Pyramid Investments?4. Investment Vs Trading?5. Portfolio allocation and Asset mix?

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How Start my Investments in Stock Market?????

How Start my Investments in Stock Market?????

1. PORTFOLIO ALLOCATION & ASSET MIX.2. MARGIN OF SAFETY.3. FUNDAMENTAL ANALYSIS.4. TECHNICAL ANALYSIS.5. ASSET CYCLE.6. MONEY MANAGEMENT SKILLS.

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STOCK SELECTION PROCESS:STOCK SELECTION PROCESS:

1. MACRO ECONOMIC ANALYSIS.2. INDUSTRY ANALYSIS.3. COMPANY SPECIFIC ANALYSIS.

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FUNDAMENTAL ANALYSIS:FUNDAMENTAL ANALYSIS:

1. PRICE VOLUME ANALYSIS.2. CHART PATTERNS.3. INDICATOR SYSTEMS.4. CANDLE STICK ANALYSIS.5. HIGH FREQUENCY TRADING.6. QUANT TRADING SYSTEMS.7. ALGO TRADING SYSTEMS.

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TECHNICAL ANALYSIS:TECHNICAL ANALYSIS:

Who is an Intelligent Investor ???“To invest successfully over a lifetime does not require a stratospheric IQ, Unusual business Insights, or Inside Information. What’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework.”

Warren E.Buffett

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Who is an Intelligent Investor/Trader ???Stock market is not a game for the stupid, the mentally lazy, the man of inferior emotional balance, not for the get rich quick adventurer persons. THEY WILL ALWAYS DIE POOR. How can I make some quick money in law or surgery. Similarly in markets too. Learn markets which is the cause, result will follow. 12

Who is an Intelligent Investor/Trader ???“No one can give you better insights about the market than market itself. If an average Investor/Trader looks at reasons for markets behavior, Successful Investor/Trader will just follow the markets movement without arguments”

Prof.CA.Rudramurthy.BVACA, M.COM. MFM. M-PHIL, PGDBA, PGDMM.

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HOW CAN YOU BECOME RICH IF I WORK HARD ???

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YOU CAN ONLY BE BORN POOR BUT NEVER DIE POOR UNLESS YOU OPTED

FOR IT”

““IF YOU FEEL, EDUCATION IS IF YOU FEEL, EDUCATION IS EXPENSIVE, THEN TRY IGNORANCE”EXPENSIVE, THEN TRY IGNORANCE”

Prof.CA.RUDRAMURTHY B.V.Prof.CA.RUDRAMURTHY B.V.CA, CFTe, M.COM, MFM, M-PHIL, PGDBA. PGDMM.CA, CFTe, M.COM, MFM, M-PHIL, PGDBA. PGDMM.

www.vachanasecurities.comwww.vachanasecurities.com

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